Introduction:Luckin Coffee has quietly adjusted the delivery prices of beverages at some of its outlets in recent months, raising the average price per cup by 2 to 3 yuan, sparking heated discussion among consumers. At the same time, Xiaoluchai, which was once operated as an independent brand, has made a comeback in physical stores in a new form, becoming a tea beverage option within the Luckin product line. This article will take you through the strategic logic behind this round of price adjustments, how Xiaoluchai is re-entering the Luckin ecosystem, and analyze the actual impact of these changes on consumers.

In recent years, the coffee market has been highly competitive, with major brands frequently adjusting their strategies in terms of pricing and product lines. Among them, Luckin Coffee has recently implemented a price increase for delivered beverages at some of its outlets in certain cities, with an average rise of about 2 to 3 yuan per cup. Although the prices for in-store pickups remain unchanged, this move has still drawn criticism from many consumers on social media platforms. In response, Luckin officials stated that this price adjustment is part of a refined management measure across 800-plus outlets in 11 cities, primarily based on differences in rent, logistics, and operational costs at each location.

Notably, this price adjustment was not announced in advance, and many customers only discovered the change when placing delivery orders, leading to a wave of dissatisfaction. Some consumers believe that even if prices are adjusted due to cost considerations, the brand should provide prior explanation rather than letting customers find out at checkout. The affected regions currently include first-tier and some second-tier cities, with a considerable number of outlets actually impacted.

Alongside the price adjustments, the latest developments regarding the Xiaoluchai brand have also emerged. This product line, which was once operated as an independent tea beverage brand under Luckin, has reappeared on the menus of some Luckin outlets in a new form after a period of dormancy. Some consumers have noticed that a Luckin outlet in a Beijing shopping mall has put up a dual-category sign reading "MIX Coffee & Tea," with its menu now featuring not only the usual coffee options but also newly added modern tea beverages labeled as "Xiaoluchai."

Xiaoluchai was initially launched in April 2019 as a tea beverage series under Luckin. Just a few months later, it broke away from the main brand and expanded through franchising under an independent tea beverage brand identity. At the time, Luckin hoped to capture the new-style tea beverage market through Xiaoluchai, and directly operated some flagship stores in key cities such as Beijing. However, with the outbreak of the financial fraud scandal in 2020 and the impact of the pandemic on physical retail, the operational pressures of the dual-brand strategy gradually surfaced.

The industry generally agrees that operating both coffee and tea beverage product lines simultaneously poses significant challenges to a brand’s resources and management capabilities. Especially against the backdrop of damaged brand credibility, Xiaoluchai’s franchise outlets faced serious challenges. Starting last year, many franchisees chose to close their stores due to customer loss and cost pressures, while Luckin also gradually reclaimed the operational rights of directly managed outlets. In Beijing, several Xiaoluchai outlets were even directly renamed as Luckin Coffee.

Now, Xiaoluchai has been reintegrated into the Luckin outlet system as a "tea beverage product line," seen as an adjustment in brand strategy. Analysts point out that Xiaoluchai has a relatively complete product matrix and a certain level of market recognition. Reintegrating it into Luckin outlets can not only enrich product choices but also help enhance the overall competitiveness of the stores. Especially in the current fiercely competitive coffee market, adding tea beverage options can attract a more diverse consumer base.

However, consumers have also noticed that the pilot outlet with the "MIX Coffee & Tea" sign has significantly higher delivery prices compared to other nearby Luckin outlets, with an average increase of 2 to 3 yuan per cup. Luckin customer service explained that this price adjustment is based on the actual operational costs of each outlet, taking into account factors such as rent, labor, and logistics, so prices may vary across different regions and outlets.

Experts point out that differential pricing is not uncommon in the retail and foodservice industries, but the premise is that consumers are clearly informed and have the right to choose. Although Luckin’s decision to adjust delivery prices at some outlets without prior announcement follows certain commercial logic, there is still room for improvement in terms of customer service and brand trust. For consumers, when placing delivery orders in the future, it might be wise to pay extra attention to price changes or opt for in-store pickup to avoid unexpected expenses.

The above content is compiled by CoffeeHunters, a coffee news website.